RealCost Tool
Car Rent vs Buy Calculator UK
Compare the cost of renting, hiring or subscribing to a car against buying one and selling it later.
Enter the rental cost, ownership period, purchase price, resale value and monthly running costs to see which option is likely to cost more.
Compare access options
Check whether renting or buying looks cheaper for the time you need the car.
Include depreciation
Buying cost is based on the purchase price minus the estimated resale value.
Add monthly costs
Include buying running costs and rental extras so the comparison is not too shallow.
Calculate rent vs buy car costs
Use the calculator to compare total rental cost against the estimated cost of buying, running and selling the car.
This calculator estimates car access costs only. It does not include finance interest, deposits, damage charges, excess mileage penalties, fuel, parking, tolls or every possible rental agreement term.
The cheapest option depends on time
Renting can make sense for short periods because you avoid buying, selling and repair risk. Buying can become cheaper if you keep the car long enough and the resale value holds up.
RealCost insight: Do not compare rental cost against purchase price alone. A fairer buying estimate should include depreciation and monthly running costs. For a wider ownership view, use the Car Cost Calculator UK.
What you need to enter
Input 1
Monthly rental cost
The monthly cost to rent, subscribe to or hire the car.
Input 2
Number of months
How long you expect to need the car for.
Input 3
Purchase price
The price you would pay to buy the car.
Input 4
Estimated resale value
What you expect the car to be worth when you sell it.
Input 5
Buying running costs
Estimated monthly insurance, road tax, servicing, MOT, tyres and repair allowance.
Input 6
Rental extra costs
Any extra rental fees, mileage charges, insurance upgrades or add-ons.
What the results tell you
Use the rental total, buying total and cost difference to judge which option looks cheaper for your situation.
Total rental cost
The total cost of renting for the number of months entered.
Buying depreciation cost
The estimated value lost between buying and selling the car.
Total buying running costs
The monthly buying running costs multiplied by the period entered.
Total buying cost
The estimated cost of buying, running and selling the car.
Cost difference
A positive result means renting costs more. A negative result means buying costs more.
Rental cost with extras
The estimated monthly rental cost after extra rental charges are included.
Example rent vs buy result
This example compares renting for 12 months with buying a £10,000 car and selling it for £8,500.
Monthly rental
£500
Period
12 months
Purchase price
£10,000
Resale value
£8,500
Total rental cost
£6,000
Total buying cost
£3,300
Difference
£2,700
What this means: In this example, renting costs £2,700 more than buying over 12 months. That does not automatically mean buying is best, because renting may still avoid repair risk, selling hassle and ownership commitment.
How to use the result properly
The cheapest number is important, but it is not the only decision factor.
Short period
Renting may be easier if you only need the car for a few weeks or months.
Longer period
Buying may become cheaper if the resale value is strong and running costs are controlled.
Uncertain plans
Renting can reduce commitment if you might move, change job or stop needing the car.
What can change the comparison?
Small assumptions can change whether renting or buying looks cheaper.
Resale value
A lower resale value makes buying more expensive.
Repair risk
Unexpected repairs can quickly reduce the advantage of buying.
Rental mileage limits
Mileage charges can make renting more expensive than expected.
Insurance
Some rental costs include cover, while buying usually means arranging insurance separately.
Deposit or damage charges
Rental deposits and damage charges can affect the real cost.
Selling hassle
Buying means you may need to sell or part-exchange the car later.
Rent vs buy is not a full ownership decision
Use this calculator for the rent-versus-buy comparison, then check the wider cost of ownership before committing.
Related calculators and guides
Continue comparing car ownership, depreciation and running costs.
Car Depreciation Calculator UK
Estimate how much value a car may lose while you own it.
Car Insurance Cost Calculator UK
Budget annual or monthly insurance costs before buying.
How much should I spend on a car UK?
Think through car budget decisions before taking on ownership costs.